SP Setia (HOLD)
Closing of the general offer
- PNB's GO ("General Offer") for SP Setia at RM3.95 per share officially closed on 19th Mar 2012, with overall acceptance level clocking in at 78.95%.
- Given that this causes free float to fall below 25%, the Joint Offerors will need to issue a proposal to resolve this issue, given that they have undertaken to maintain the listing status of SP Setia.
- We regard the closure of the GO as positive as it allows SP Setia to fully focus on meeting their RM4.0bn sales target for 2012. But at the same time, a free float of 25% would mean SP Setia’s free-float adjusted market cap stands at RM1.83bn vs. RM2.83bn for UEM Land.
- We maintain our HOLD recommendation and target price of RM3.95, which is the offer price.
Source: HLIB Research 20 March 2012
Thank you very much indeed for compiling the research reports daily. I appreciate the amount of work involved.
ReplyDeleteI wonder if you could activate the blog archive facility so that all your postings are listed as a summary on the right hand column. It would make your blog even more user-friendly and your postings would be easier to follow by date.
Thank you once again and keep up the good work!